Risk Management

We have developed a Risk Management Policy that outlines our basic approach to prevention and handling of risks that may hamper the execution of the Group's business, and the Risk Management Regulations that set forth risk management organizations and their roles. Through these measures, we promote group-wide risk and crisis-management and BCP/BCM (Business Continuity Planning/Business Continuity Management).
We convene the Risk Management Committee as an advisory body for risk management twice a year, in principle. The committee regularly checks risk management process including identification, analysis, evaluation, and treatment with regard to risks that have a major impact on the management of the NTN Group in light of changes in the internal and external environment and other factors. We have classified risks into the following 12 categories from the perspective of ensuring completeness. After that, an administrative manager and a promotion department have been determined for each specific risk that will have a significant impact on the management of the NTN Group. Through these measures, we endeavor to reduce risks. The results of the discussion at the Risk Management Committee are reported to the Board of Directors.

■Risk management process

■Risk Category

1. Risks related to technology and R&D
2. Risks related to procurement and logistics
3. Risks related to production and inventory
4. Risks related to quality
5. Risks related to sales and marketing
6. Risks related to personnel and labor
7. Risks related to the environment and health & safety
8. Risks related to information systems
9. Risks related to finance and accounting
10. Risks related to legal affairs and compliance
11. Risks related to fire and disaster prevention, etc.
12. Others

■Structure